With the ‘pandemic-era’ ecommerce boom firmly in the rearview mirror, retailers now face the challenge of ensuring sales remain high in a cooler market. According to Forbes, in 2020, during COVID, ecommerce sales in the UK accounted for around a third (32.5%) of all retail sales, and by 2022, the proportion of UK retail sales made online, although reducing, was 26.5%. However, this was still more than double the level compared to 2012.

Despite this slow deceleration, the UK ecommerce market remains robust, with a value projected to reach approximately £125.3 billion by the end of 2025. Nonetheless, ecommerce retailers, especially those sellers heavily reliant on Chinese imports, must now also find ways to offset the increased cost of goods sold caused by rapidly evolving tariffs. Geopolitical unrest and supply chain disruptions are disrupting fulfilment operations too, and this is impacting revenue stability.

However, Johannes Panzer, Head of Marketing, Global Ecommerce at Descartes, explains why he believes retailers have cause for optimism in the form of a younger generation of consumers.

The Promise of Youth

The brightest light on the ecommerce horizon is the Gen Z and younger Millennial cohort (consumers aged 18-35 years). In today’s digital landscape, online buying is a fundamental part of younger consumers’ shopping experience, with Gen Z expected to account for nearly 20% of global spending in 2030. Alongside this, the 2025 Descartes study: “How Smarter Delivery Wins Younger Consumers as Online Buying Slows,” examines the ecommerce buying behaviour of 8,000 North American and European consumers, found that in a slower-growing e-commerce market, consumers aged 18-35 years (“under-35s”) are the biggest contributor to online growth, increasing both the volume and frequency of their purchases over the last 12 months compared to 2024. 

Strikingly, while 18% of overall consumers surveyed cut back on purchases during this period, 43% of under-35s increased their spending year-on-year, compared to just 32% of over-65s. In fact, 44% of under-35s made online purchases at least every two weeks, a significant jump from 33% in 2024. 

These statistics prove that the younger demographic drives the majority of growth in online sales and also offers the greatest customer lifetime value to retailers. As a result, satisfying the online buying and home delivery expectations of under-35s is foundational to continued growth.

High Expectations, Higher Stakes

Younger shoppers hold high ecommerce and delivery expectations, placing great importance on the cost of delivery (71% of survey respondents), security (77%), and delivery tracking (72%). Like most shoppers, this cohort expects their purchases to be delivered on time, in good condition and backed by an easy returns process. 

Eco-friendly deliveries and a company’s commitment to sustainability are also of particular importance to younger online buyers. While only 9% of all consumers consider a lack of environmentally friendly deliveries a barrier to future online purchases, 40% of under-35s are interested in receiving a sustainable delivery option, compared to just 23% of over-65s.

The Struggle to Meet Delivery Expectations

Despite the demand remaining high in the UK, ecommerce merchants are still struggling to meet the delivery expectations of under-35 shoppers in 2025. Although home-delivery performance by retailers and their delivery partners has improved slightly over the past few years, the 2025 Descartes Survey, reveals that only 11% of under-35s reported being always satisfied with their online delivery experience, compared to 22% of over-65s. Further, it’s easy to see why younger consumers aren’t satisfied with ecommerce delivery performance: While just over half (53%) of over-65s – and 66% of all consumers – experienced delivery issues during the three-month period surveyed, an alarming 79% of under-35s had a problem with their delivery. 

Whether dealing with late or wayward deliveries, damaged packages or parcels delivered to an unsecure location, under-35 consumers reported a higher percentage of negative experiences than overall respondents. This poor performance from fulfilment to delivery damages brand loyalty and customer retention, increases costs associated with customer acquisition, and ultimately translates to shrinking profits, especially given the tight margins under which most retailers operate.

Retaliation Decimates Future Revenue

The bad news for retailers continues. Hand-in-hand with high expectations, Gen Z and younger Millennials have a low tolerance for subpar delivery performance, with 21% of under-35 buyers admitting to not ordering from a retailer again in response to a negative delivery experience.

In fact, younger consumers are significantly more likely to take action in response to delivery issues, with 79% of under-35s responding in some way, versus just 45% of over-65s. While consumers of all ages lost trust in the delivery company or retailer when things went wrong, 20% of under-35s told friends and family to avoid the retailer, and 15% posted their dissatisfaction to social media, compared to only 7% and 6%, respectively, of over-65s. And in today’s digital, socially-driven sales and marketing environment, negative word-of-mouth and social posts have immense power to decimate future revenue.

Neglecting the Delivery Experience Risks Profitability 

Given that effective fulfilment is a fundamental component of ecommerce, neglecting the delivery experience risks the profitability associated with long-term relationships with the younger demographic. But by making a concerted effort to understand the different buying and delivery experiences and personas of under-35 consumers, retailers can win the hearts and minds (and buying power) of the younger generation. 

Employing technology to provide both the choice of delivery options today’s consumers expect and the reliability demanded by increasingly sophisticated buyers, particularly the under-35 group, is key to mastering the delivery process. By using technology to tailor delivery options to meet the needs of various delivery personas, such as cost-conscious, environmentally friendly, speed-focused, or desiring a precise delivery window, ecommerce retailers can differentiate their brand through an enhanced delivery experience. 

For instance, 60% of under-35s indicate speed is less critical, and instead prioritise the lowest cost (28%), a precise delivery window (18%), or the most environmentally friendly (14%) option. So, by offering younger consumers the ability to choose a lower-cost or sustainable delivery or select a narrow delivery window that they can rely on, retailers can cater to the nuanced delivery personas. 

To Conclude

Finding opportunity through the slower ecommerce growth in 2025 is vital for ongoing profitability. That opportunity lies with younger online shoppers who can provide retailers the lifeline that they need. However, ecommerce retailers need to recognise that poor delivery experiences can compromise their ability to take advantage of this growing revenue opportunity that is available.  

From cost to reliability, sustainability to security, failure to address the needs of this sophisticated online buying group of people is a threat to retailers’ long-term profitability. Last-mile, home-delivery technology enables organisations to provide delivery options that match the preferences and expectations of the younger generation of consumers. In the process, ecommerce retailers can develop a positive delivery experience, strengthen the connection to their brand, reduce churn and deliver repeat sales.